Red Rock Resources Procures $2M Bank Loan For Mineras Four

5th Jul 2010 10:57

LONDON (Dow Jones)--Red Rock Resources PLC (RRR.LN), a mining exploration and mineral investment company with interests in steel feed, uranium and gold, said Monday pursuant to the June 10 funding and co-operation agreement with Mineras Four Points SA, Red Rock has procured a bank loan for Mineras Four of $2 million. MAIN FACTS: -The purpose of the loan is to enable Mineras Four to invest in production and mining equipment at the El Limon and La Aurora gold mines in the province of Antioquia, Colombia. -$1 million of the loan was drawn down by Mineras Four on July 2; It is expected that the balance will be drawn down within three months. -The loan carries interest at 5% per annum on the average outstanding amount and will be repayable on June 30, 2013. -In consideration of the obligations assumed by Red Rock under the loan guarantee, Red Rock has been granted charges over the gold production of Mineras Four and over the existing issued share capital of Mineras Four. -Shares of Red Rock at 0954 GMT up 0.08 pence or 4.23%, at 1.85 pence, valuing the company at GBP10.80 million. -By Tapan Panchal, Dow Jones Newswires. Tel +44(0)207-842 9448, [email protected] (END) Dow Jones Newswires July 05, 2010 05:57 ET (09:57 GMT)